Engineering and Construction - Essay Example

? Engineering and Construction Engineering and Construction Question one It is in order that the contractor consults with the relevant individuals in the case whereby the tenderer exceeds the budget of the principle. Cheaper plant items could work better if they are replaced with the costly items. An experienced tenderer in the field could provide assistance in the selection of cheaper items. Ha can as well come up with a suitable solution to the problem. Nonetheless, the project manager should discuss the issue with an electrical consultant. With hos respect, another tenderer can therefore be involved in the discussion. The involvement of the other tenderer that would assist to reduce the gap between the tender and the budget by offering a better solution out of experience from working with different types of tendering items. The tenderer can give directions of acquiring cheaper tools. At the same time, the tenderer can promise to offer a cheaper tender for the same contract. If there is a significant discrepancy noted between the new tenderer and the other tenders, adjustments should therefore be made to seek convenience in the contract. A notification of the tenders- This is to inform you that the scope of the tender has experienced some alterations. According to the budget issued by the principle of the contract, we comprehended that the tenders exceed the budget. Due to lack of enough funds to pay for the project, the project directors have called for the adjustments on the costs of the tender. In that response, I as the contractor, through the guidance of an electrical engineer, have decided to change the scope of the tender so as to reduce the amount of expenditure. The standing mixers in our water plant can be fitted with renovated electrical motors. This would assist the company to achieve some net saving. Legal bases that support this idea can be; according to the distinctions given in section nine, the quality of the materials of work can be changed relatively by the electrical engineer. Any advice given to the contractor by his adviser is adjustable and therefore the contractor has the right to change the scope of the tender. The adviser can change the order or direction in which the work is to be carried out (Engineering and construction, 2004, pg. 34). The specific recommended client can be informed through a notification letter which would provide the strategy arrived ay the contractor and their advisor. A notification to the client would read; After evaluating the three available tenders, PPK Ltd is placed forward with much recommendation. The tender is three hundred and sixty five dollars plus GST and comprises twenty tags. Upon the PPK recommendation; the tender has more tags that are accepted without any issue. It consists of the large number of tags yet there does not exist in a large difference in cost between PPK and LMN. ZXK Ltd. is the cheapest tender but has the lowest number of tags. Although the PPK tender is the best for this contract, it would require the highest amount of money. We can make much investment on the PPK so that we can get the best service that would meet our expectations. A notification letter to the tenderer. Kindly note that you, LMN and PPK Ltd, has been selected to perform the contract offered by our company. With respect to the featured information in the tender description, the company considered the PPK tender due to its reasonable number of tags provided in the description. With this response, the company wishes to invite you to a pre-contract meeting, which is programmed for date fourteen of this month. The company shall not violate the available rights of protection towards your tender. The pre-contract meeting shall discuss matters concerning cost, any payments and the reduction in scope of this tender. You will also be expected to provide a specific date for the start of your contract. Letter to LMN The XYZ company has accepted the revised tender amount with the revised contract period. In addition, the company holds much appreciation to LMN for their reduction of cost to ,333,776$,three hundred and thirty three thousand, seven hundred and seventy six dollar. In order to meet the demands of the LMN tender, the principle of the XYZ has therefore accepted to extend the contract period to twelve weeks. Question two LMN Ltd is entitled to a sum total of cash $33,377 for compensation of the tender. This is calculated with respect to the amount of work completed. LMN had completed five percent to ten percent of the contract. Therefore, LMN should receive a ten percent of their total pay. Claim and payment schedule Outflows shall be made after an agreed period of seven days of working. After a ten percent of the total work has been completed, the tender shall be entitled to payments that will take the relevant percentage of the work done. XY will also provide for a certain bonus to its tender. If ten percent of the remaining work is completed in a period of less than one week, the tender shall receive a two percent bonus of payment. No advances shall be paid to tenders before the period of seven days. Preparing the payment program eighteen days after the claim still sets me to the legal time limit given in NZS3910:2003. With respect to the law, the act provides for the assessment of the contractor’s payment claims and may therefore amend them as necessary to comply with the terms of the contract and his valuation of the work carried out. Eighteen days of the consideration for the provision of the payment schedule best fits the work carried out. Any amendment of the contract by the tender also leads to adjustments in the payment schedule. However, XYZ has now five working days to pay to LMN Ltd. The engineer to the contract can refuse to pay twice for the same turbidity meter. According to the act, the engineer is permitted to provide any ruling on the contract. If he finds it justified to provide the right payments for LMN Ltd, the law will therefore protect the engineer. Question three In case of any reasonable barrier to the punctuality of completion, the tender has the right to seek for an additional time. The LMN Ltd request for a one-week extension of time is therefore valid. This notification justifies the request for an addition of time and calls for its approval from the principle and the engineer of the contract. According to the Act on NZS 3910:2003, ‘the engineer is expected to prolong the time for completion of the contract works or for any separate portion if the contractor is fairly entitled to an extension of the net effect of any difference. ‘Weather sufficiently or inclement to interfere with the progress of the work or any strike, lockout or other industrial action shall provide for time extension (Engineering and construction, 2004, pg. 34). A variation should also be given to LMN Ltd to get rid of the mud. LMN Ltd should do the variance for a period of one or two week extension of time. the act provides that ‘upon the receipt of details of the period of extension sought by the contractor, the principal shall, if she or he has determined that the contractor is fairly entitled to extend, then determine the period of extension and notify to the contractor of his decision as soon as practicable’. The tenderer will therefore have no right or place to change the specified time by the principle. (Institution of Civil Engineers, 2007; pg. 56). LMN Ltd can reject this request for variance without being reprimanded. According to NZS 3910:2003, ‘The value if any of each variation shall as far as possible is determined by agreement between the contractor and the engineer. The engineer shall therefore determine the value if the agreement fails. Bibliography Institutions of civil engineers. (2007). Proceedings of the Institution of Civil Engineers. Management, procurement, and law. London, [Published for the Institution of Civil Engineers by Thomas Telford]. Engineering and constructions. (2004). NZS 3910:2003. Retrieved May 5, 2013 from http://www.academia-research.com/filecache/instr/_/t/846085__the_contract_.pdf Read More